Toastique Franchise in 2024: Costs, Fee & FDD
Find out whether investing in a Toastique franchise is a smart move with our detailed breakdown of its costs, potential earnings, and market positioning. Explore the factors behind this health-focused brand’s rapid growth and appeal!
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Toastique is a fast-casual franchise that brings a fresh and modern approach to healthy dining, focusing on gourmet toasts, fresh juices, and smoothies. Founded in 2018 by Brianna Keefe, Toastique was born out of her passion for offering nutritious, beautiful, and delicious meals on the go. The brand quickly gained attention for its unique concept and vibrant presentation, making it a standout in the fast-casual health food space. Toastique has successfully carved a niche in the industry, appealing to health-conscious customers looking for convenient yet wholesome options.
The menu revolves around its signature gourmet toast creations, which are topped with a variety of high-quality ingredients, ranging from avocado and smoked salmon to fresh fruit and honey. Alongside toasts, the brand also offers smoothie bowls, juices, and other healthy snacks, catering to a diverse range of dietary preferences. Its core customer base consists of health-focused individuals, fitness enthusiasts, and millennials who prioritize wellness without compromising on flavor.
Toastique has been steadily expanding its footprint, currently boasting more than 20 locations across the United States. Its focus on offering a unique and health-driven dining experience has helped it gain a loyal following. With ambitious growth plans, Toastique continues to target major urban centers and affluent suburban markets, aiming to tap into the increasing demand for healthy and convenient dining options.
In terms of franchise support, Toastique provides a comprehensive system designed to set franchisees up for success. This includes extensive initial training programs that cover everything from day-to-day operations to marketing strategies. Franchisees benefit from continuous support, including guidance on location selection, store design, and ongoing operational support. Additionally, the brand emphasizes community involvement, encouraging franchise owners to engage with local health and wellness initiatives.
Toastique Franchise Insights
- Toastique offers 22 total U.S. locations, with 16 franchised units and 6 corporate units, showing balanced growth in franchise expansion.
- The franchise fee is $55,000, making it a relatively affordable option in the fast-casual segment.
- Founded in 2018, Toastique has been offering franchises since 2019
- Toastique appeals to millennials and Gen Z customers, who are driving the healthy eating trend, with 67% of millennials saying they prioritize healthy food options when dining out.
Toastique Franchise Key indicators
Growth YOY (%)
129%
vs industry 0%
Total U.S. Franchised Units
16
3-Year Failure Rate
32%
vs industry 10%
Sales-to-Investment ratio
1.4:1
How much does it cost to open a Toastique franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Toastique franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Toastique franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Toastique below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $55,000 | $55,000 |
| Go to Market Launch Fee | $7,500 | $7,500 |
| Construction and Leasehold Improvements | $152,025 | $373,000 |
| Lease Deposits (Three Months) | $6,000 | $15,000 |
| Furniture, Fixtures, and Equipment | $60,000 | $80,000 |
| Store Art & Feature Wall | $5,000 | $8,000 |
| Signage | $8,000 | $15,000 |
| Computer, Software, and POS System | $500 | $1,000 |
| Grand Opening Marketing | $20,000 | $25,000 |
| Initial Inventory | $16,000 | $20,000 |
| Utility Deposits | $250 | $1,500 |
| Insurance Deposits (Three Months) | $250 | $1,000 |
| Travel for Initial Training | $2,500 | $5,000 |
| Professional Fees | $10,000 | $36,000 |
| Licenses and Permits | $750 | $1,200 |
| Additional Funds (Three Months) | $30,000 | $40,000 |
| Total Investment | $373,775 | $684,200 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Toastique franchise, the required capital involves both the initial investment costs and a net worth requirement set by Toastique. Let’s take a closer look below:
- Initial Investment As mentioned, the total investment to open a Toastique franchise is estimated between $373,775 and $684,200. This covers all costs, including the franchise fee, build-out, equipment, initial inventory, and more. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets For a franchise investment of this size, most franchisors generally expect potential franchisees to have at least $100,000 to $200,000 in liquid assets. This ensures that you can cover initial operating expenses and any unforeseen costs as the business ramps up.
- Net Worth A typical net worth requirement for a fast-casual franchise like Toastique might be around $500,000 to $1 million, depending on the franchisor’s expectations. This helps demonstrate financial stability and the ability to manage and grow the business.
How much does a Toastique franchise owner make?
Calculating the salary of a Toastique franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Toastique franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Toastique Revenue & Gross Sales
Based on most recent analysis, Toastique franchises have a median gross sales of $754,506. This strong financial performance underscores the brand’s robust consumer demand and potential for significant revenue generation.
Which key factors impact the average revenue performance of Toastique franchisees?
The performance of U.S. franchisee median gross sales for Toastique could likely be attributed to a few key factors. First, the growing consumer demand for healthy, fast-casual dining options has driven more traffic to locations as health-conscious eating continues to rise in popularity. Second, the brand’s focus on high-quality, locally sourced ingredients, combined with visually appealing products, aligns well with current market trends. Additionally, strategic location openings in urban and affluent suburban areas likely boosted sales, as these regions tend to attract the target demographic. The ongoing support and training provided by the franchise may have also helped franchisees optimize their operations and marketing, leading to higher overall performance compared to the prior year.
Toastique Franchise Operational Costs
When opening a Toastique franchise, key primary ongoing operational costs would include:
- Labor costs Given that Toastique operates in the fast-casual space, staffing expenses, including wages, benefits, and payroll taxes, will be one of your largest ongoing costs.
- Ingredients and supplies Maintaining the fresh, high-quality ingredients that Toastique is known for will be a consistent operational cost, including regular inventory purchases for produce, bread, and specialty items.
- Lease or rent The cost of leasing a prime location in urban or affluent areas can be significant, particularly since Toastique tends to thrive in high-foot-traffic locations.
- Utilities Regular expenses for electricity, water, and other utilities necessary for operating a food service establishment.
- Maintenance and repairs Regular upkeep for equipment like juice machines, toasters, and refrigeration units will also be a recurring cost to ensure the store operates smoothly.
These are core areas you’d need to factor into your financial planning as a franchisee.
Toastique Franchise Fees
Here are some key ongoing fees you would need to consider when owning a Toastique franchise:
- Royalty Fee 6% of gross sales, charged weekly. However, if you purchase a multi-franchise addendum (1-3, 1-4, or 1-5), the royalty fee is waived for the first three months of your first restaurant.
- Brand Development Fund Up to 2% of gross sales, also charged weekly, to support national and regional marketing initiatives.
- Franchisee Directed Local Marketing 2% of gross sales, spent monthly on approved local marketing efforts within your designated territory.
In addition to these standard fees, there may be other additional fees associated with training, technology, or other services, depending on the specific needs of your franchise location.
These ongoing fees are essential to consider as they directly impact your gross revenue, so it’s vital to include them in your financial projections and planning.
Toastique Franchise Earnings
Based on the most recent data, Toastique franchise owners operating their locations as owner-operators can expect median gross sales of approximately $754,506. This demonstrates the strength of the brand and its ability to generate solid revenue in the fast-casual, health-focused space.
From these gross sales, owner-operators earned an estimated median income of $113,176 based on industry operating profit margins, reflecting the profitability of running a Toastique location. While actual earnings will depend on various factors such as location, operational efficiency, and marketing efforts, these figures provide a clear benchmark for potential franchisees. By focusing on maintaining high product quality and excellent customer service, franchisees have the potential to grow their earnings further.
How to Open a Toastique Franchise
Becoming a Toastique franchisee involves several key steps that guide you from the initial inquiry to the opening of your own location:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Preliminary Discussion After your inquiry, you will have a call with a franchise representative to discuss the business model, your qualifications, and whether Toastique aligns with your goals.
- Application Process Submit a formal application for review. This step ensures that you meet the financial and operational requirements.
- Discovery Day You may be invited to a discovery day, where you visit the headquarters, meet the leadership team, and get a firsthand experience of the brand.
- Signing the Franchise Agreement Once both parties agree to move forward, you will sign the franchise agreement and officially become a Toastique franchisee.
- Site Selection and Build-Out With guidance from the franchise team, you’ll find a location, manage lease negotiations, and begin the build-out of your store.
- Training Before opening, you’ll attend comprehensive training, covering daily operations, marketing, and customer service.
- Grand Opening With everything in place, you’ll have a grand opening supported by the franchise team to help ensure a successful launch of your business.
Pros & Cons
Pros
Health-Focused Niche: Toastique taps into the growing demand for nutritious, on-the-go food options, making it an appealing choice for health-conscious consumers.
Strong Profit Potential: With median gross sales over $750,000 and owner-operator earnings exceeding $100,000, the financials are promising for franchisees.
Lower Footprint: Toastique’s model requires less space than many fast-casual franchises, reducing build-out and operational costs.
Cons
Premium Pricing: Toastique’s products may cater to a more affluent customer base, potentially limiting its reach in markets that are more price-sensitive.
Initial Investment: While not the most expensive, the total investment range of $373,775 to $684,200 might still be a significant financial commitment.
Competitive Market: The fast-casual, health-focused food industry is competitive, and success may depend heavily on the specific location you choose.
